The interest rate for tax overpayments and underpayments will rise by 1 percent for the calendar quarter beginning April 1, 2005, according to the Internal Revenue Service. The second quarter rate for noncorporate overpayments and underpayments is 6 percent. The interest rate for corporate overpayments is 5 percent, or 3.5 percent for the portion of a corporate overpayment exceeding $10,000. The rate is 6 percent for corporate underpayments, or 8 percent for large corporate underpayments. The interest rates are computed from the federal short-term rate based on daily compounding determined during January 2005.
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